A Model for Planning the Transition to Equilibrium of a University Budget

摘要: Five-year projections of university expense and income items are incorporated into a model requiring long-run financial equilibrium (LRFE) at the end planning period. LRFE means that both budget levels growth rates in balance. The “transition to equilibrium” consists set simultaneous linear equations solved for an estimate amount base reductions needed achieve five years later. was applied Stanford University, resulting $10.2 million adjustment target accepted, now (two later) more than 85 percent changes have been implemented.